Session Chairs: Omar Suwaina Al Suwaidi, ADNOC; Paul Theys, ExxonMobil
Energy is a growth industry. Driven by population growth and continued economic growth, global energy demand is expected to increase by approximately 35% by 2040. Meeting this demand growth is increasingly challenging, but also creates opportunities. Much of the world’s remaining supplies of oil and gas are found in remote locations, extreme climates or technically challenging reservoirs—with significant reserves remaining in mature fields.
In the myriad dimensions that shape the worldwide market for energy, what role will NOC-IOC partnerships play to reflect the resource challenges that are particularly acute in the development of mature fields? How to optimize the application of enhanced oil recovery technology to increase hydrocarbon recovery and value—while balancing risks and rewards? How to further develop human resources, build capacity and increase collaboration to rise to the challenge? And how to develop resources in a way that not only maximizes value, but also realizes the national vision for economic, social and environmental progress over the long term?
We have assembled a varied panel of experts who can cover all of these aspects – technical, commercial, human resources, environment and strategic. The panel will debate the NOC/IOC collaboration in fields in an informative and interactive way.
Omar Suwaina Al Suwaidi, Deputy Director Strategy & Coordination, ADNOC
Session Chairs: Aqeel Madhi, NPCC and Abdulaziz Al Ameri, GASCO
With the increasing demand for capital projects and qualified resources and funding constraints in the current financial climate, organisations worldwide are looking for a better ways to tender, execute, manage and deliver their portfolios. High performance in capital projects and excellent project management has become imperative in the curricula of achieving project excellence.
Effective project management starts at early project stages with smooth transition of responsibility from owner to contractor during bidding and executing capital projects, where project definition and work scope have to be clearly defined. Thus, Front-End Engineering and Design (FEED) is essential to be fully developed by owner.
Contractors are practically made to take the risk while endorsing the FEED document for any lapses and inaccuracies/deficiencies in the FEED if discovered during execution stage which may cause considerable design growth, changes in material specification, and construction requirements, etc. These changes proved very costly to contractor on account of both cost and time required for execution of the additional works and eventually effecting overall project completion.
This is the result of uneven risk distribution in which owner is transferring project risk as well as other onerous contractual terms and condition onto EPC contractors. In an EPC contract it is essential to determine a realistic risk sharing scheme i.e. identify risks which are foreseen by and are largely within the control of owner and that of contractor. Such risks should be borne by the respective parties who can control it. Proper risk and reward provisions need to be incorporated in the EPC contract for any shared risk to ensure that risk-takers have adequate opportunities to be profit-makers. Factors which are beyond the control of the EPC contractor should be kept as reimbursable/re-measurable sum, or the maximum risk to be borne by the contractor could be capped to a specified limit.
The path to achieve project excellence is challenging, but the rewards are achievable through improved approach to project management of major capital projects such as identification and defining of critical success factors, project success criteria, effective contracting strategies including risk sharing and utilising proven designs across multiple projects driven by strongly committed and motivated leadership from owners and contractors.
Mark Nolan, Vice President, Middle East and Australia, ExxonMobil Development Company
Session Chairs: Andrew Vaughan, Shell and Daisuke Urasaki, JODCO
The challenges facing the industry over the next 30 years will require a talented workforce who are able to develop and apply increasingly sophisticated technology to the issues of finding and producing increasingly complex and scarce hydrocarbon resources. It is almost certain that the numbers of skilled engineers, technicians and operators needed will rise at a time when, in some countries, there is a decline in young people seeking technical careers. In addition, where once, the industry relied heavily on OECD expatriate expertise, there is now a justifiable desire for oil producing nations to develop indigenous talent. This panel will examine the roles and responsibilities of governments, academic institutions and industry in developing the talent of the future.
Omar Salem Al-Shamlan, Vice President Manpower Development, ADMA-OPCO
Session Chairs: Musabbeh Al Kaabi, Mubadala Petroleum and Stephen Lloyd, Oxy
Unconventional resources make up almost two-thirds of the world’s hydrocarbon resources (USEIA, 2013). Unconventional resources exist as tight gas, coal bed methane, shale gas, shale oil, and methane hydrates, to name a few. Fifty-six percent of the world oil reserves are held in the Middle East (Forbes, 2014), which also has enormous untapped potential in unconventional reservoirs. Demand for fuels is rising, and that means finding new fields in known basins or applying new technology to get more out of established ones, or both, of course. Nowhere is this reality more critical than in the Middle East, where there is a fast emerging focus on unconventional resources, along with specialised techniques for successful evaluation and development of these resources. The goal of this session is to demonstrate the capabilities of modern technologies for economically and efficiently evaluating, developing, producing and managing hydrocarbons in unconventional reservoirs. The following topics are emphasised:
Mohammed Badri, Managing Director, Dhahran Carbonate Research Center, Schlumberger
Session Chairs: A. Salim David Khemakhem, ZADCO and Li Yueqiang, CNPC
With the oil and gas industry seeing a number of new and emerging markets we take a look at what supply and demand scenarios will look like post 2014 and how new commercial supply hubs will need to align with customer needs. At the same time the industry needs to address the balance of ongoing investment into conventional and unconventional exploration and production to ensure a continued and increasing supply of oil and gas for both local domestic and export fulfillment.
Foreign energy policy and international energy cooperation remain high on the oil and gas agenda. Taking this into account, how can we expect governing bodies to continue driving international dialogue on energy security? How can we expect to see their role develop and adapt in the next 10-15 years?
Ali Obaid Al-Yabhouni, Chairman of the Board, Chief Executive Officer, ADNATCO-NGSCO
Session Chairs: Hatem Nuseibeh, Total and Nabil Al Alawi, Al Mansoori
The oil and gas industry is experiencing an unprecedented growth, as the global energy demand continues to rise. The growth has brought with it great opportunities and challenges. The industry will be tested by the technical challenges of post “easy oil” era and the concerted international awareness for more responsible developments where Health, Safety and Environment (HSE) are considered at the centre of these challenges.
The key HSE challenges that organisations’ are confronted with during this period of growth, are the lack of experienced manpower along with the difficulty of recruiting and developing competent personnel with a strong commitment towards HSE.
The theme of ADIPEC 2014 HSE panel is “Aligning Cultures, Communication and Competence’ aimed at sharing best practices amongst organization on how to deal with the vast number of nationalities amalgamating into teams, with distinct cultural backgrounds and differing levels of risk appreciation, ultimately aligning HSE expectations and policies.
This HSE panel welcomes experts to highlight their achievement and world class excellence in HSE performance, free of incidents and ill health, with a sustainable environment. Speakers are invited to address the various issues of green hands, competence, aligning cultures and expectations from previous experiences with best practice initiative and remedial actions taken. As well as to showcase the significant improvements that have been achieved during the past decade on personal safety, competence, communication and culture, with the associated analysis and limitations of the initiatives adopted.
New ideas are welcome on how to achieve the required HSE goals and to implement a strong sustainable ‘HSE culture’ within the industry.
Nasser Mohammed Al-Deeni, Vice President-HSE & Corporate Support, NPCC
Session Chairs: Hussein Fouad El Ghazzawy, Schlumberger and Neri Askland, Statoil
Exploiting hydrocarbons from the deep reaches of the earth has been no easy task. The scale of innovation required rivals those in any other high technology industry. It is well known in the industry today that most of the “easy oil” has been discovered and the task to produce and recover more hydrocarbons is becoming harder. Presently, oil and gas exploration is focused increasingly on finding resources located in more geologically complex, deeper, and lower-quality reservoirs.
As the quantity and the quality of the remaining recoverable reserves slowly diminishes while our desire to minimize environmental impact is strengthening, it has become vitally important for the industry to put more focus on Research & Development to develop technologies to serve every aspect of the well and reservoir life cycle from exploration, development and production through to abandonment.
The sources of technology destined for the oil and gas markets have changed over time. The era where oil & gas companies used to buy versus build new technologies have changed significantly throughout the last decades. The ever increasing industry challenges have prompted the oil & gas companies to change their research & development strategies and partner with technology providers to develop new technologies faster.
Global energy demand will be significantly increasing with time meanwhile the oil & gas reserves are becoming more expensive to produce. The activities in research and development and new technology have become increasingly imperative to address the challenges facing our industry, and new technology and innovation are key elements for the successful development of oil and gas reserves.
The major industry challenge now is to encourage research and development activity and to promote dialog between industry and research groups with the aim of matching industry needs with research and development activities and to ensure capabilities and resources used most effectively by addressing the highest priority business needs.
Mark Durandeau, Senior Vice President Research & Development, The Petroleum Institute
Session Chairs: Martin Bremeier, Wintershall and Ahmad Saqer Al Suwaidi, ADMA-OPCO
Hydrocarbons (conventional and unconventional) are likely to remain the main energy needed to meet the growing global energy demand in the next 30 years. The worldwide production of crude oil could potentially drop by nearly 30-40 million B/D in the next 5-10 years from existing projects due to natural depletion of current fields and lack of new discoveries and an additional 25 million B/D of oil will need to be produced for the supply to keep pace with consumption.
Scientific breakthroughs and technological innovations are needed, not only to secure supply of affordable and economical hydrocarbons, but also to minimize the environmental impact of hydrocarbon recovery and utilization. Sustaining the required production levels over the duration of the lifecycle requires a good understanding of and the ability to control the recovery mechanisms involved.
For primary recovery (i.e. natural depletion of reservoir pressure), the life cycle is generally short and the average recovery factor does not exceed 20% in most cases. For secondary recovery relying on either natural or artificial water or gas injection, the incremental recovery ranges from 15 to 25%.
Globally, the overall recovery factors for combined primary and secondary recovery range between 35 and 45%. Hence, increasing the recovery factor of maturing projects by 10 to 30% could contribute significantly to the much-needed energy supply. To accomplish this operators and service companies need to find innovative ways to achieve this while minimizing operational costs and environmental impact.
Sebastian Geiger, Foundation CMG Chair Carbonate Reservoir Simulation and Co-Director International Centre for Carbonate Reservoirs, Heriot Watt University